#TrumpTaxCuts

The Trump Tax Cuts, officially known as the Tax Cuts and Jobs Act (TCJA), were signed into law by President Donald Trump in December 2017. The legislation represented the most significant overhaul of the U.S. tax code in over three decades. It reduced the corporate tax rate from 35% to 21%, aiming to make American businesses more competitive globally. For individuals, it lowered income tax rates across most brackets, doubled the standard deduction, and increased the child tax credit. However, it also capped state and local tax (SALT) deductions at $10,000 and eliminated personal exemptions.

Supporters of the TCJA argued it spurred economic growth, boosted job creation, and increased wages by leaving more money in the hands of businesses and consumers. Critics contended it disproportionately benefited corporations and wealthy individuals while significantly increasing the federal deficit. While there was initial economic momentum following its passage, analyses show mixed long-term impacts, with less clear evidence of sustained wage growth or business investment directly tied to the cuts. Many provisions affecting individuals are set to expire after 2025, leading to ongoing debates about whether they should be extended or revised. The TCJA remains a key topic in discussions about fiscal policy and economic inequality.

Would you like a quick comparison of Trump’s tax cuts versus Biden’s current proposals too?